Alzheimer’s is a neurological disease that typically affects older adults, and there are over 6 million Americans living with a diagnosis, according to the Alzheimer’s Association. While it may feel more straightforward to prepare to manage this disease from a health perspective, it can also be beneficial to lay the groundwork to ensure your continued financial security after an Alzheimer’s diagnosis.
Alzheimer’s can impact your decision-making and problem-solving abilities, and managing your finances often involves making key choices that can have far-reaching effects on your life. Thus, it’s important to have a plan in place to help manage your finances if your ability to do so gradually fades after an Alzheimer’s diagnosis. Read on to learn general steps to take to financially prepare for Alzheimer’s, whether you’re learning for yourself or a loved one.
Act Soon
There’s no time to waste when it comes to Alzheimer’s. This disease is progressive, and it’s important to act as soon as possible when you receive a diagnosis. Taking action to financially prepare for your future as the disease progresses may increase the likelihood that you’re comfortable and secure throughout the remainder of your life. This is the time to get all of your affairs in order so that you can allow yourself the dignity and security to manage this disease as it progresses.
Consider Financial Obligations
Initially, consider your outstanding financial obligations. Often, Alzheimer’s diagnoses occur later in life – in a person’s late sixties or seventies – so it’s possible that you have investments you’re accessing in retirement by this point.
Try to answer the following questions as you prepare:
- What are my debts?
- What are my benefit claims?
- What investment decisions can I make today to best secure my future as an adult living with Alzheimer’s?
To answer the latter question first, you might consider securing your investments’ future by avoiding risk. Shifting your investment portfolio away from risky stocks, such as cryptocurrencies and growth stocks, and into the blue chip, dividend-paying stock may be a wise move. Similarly, making good on all your debts, or establishing a mechanism to have them paid off automatically, can simplify your financial life.
Also, consider the benefit claims that are available to you. Social Security Disability covers early-onset Alzheimer’s. You could potentially receive benefits sooner than you would otherwise if you receive a diagnosis before you retire.
Make a Plan for Big Financial Decisions
Take a mental audit of your big purchases, both recurring and one time only. These are the financial decisions that you’ll likely need assistance with as your Alzheimer’s diagnosis progresses. Smaller purchases, such as groceries, are often less problematic for those living with and managing Alzheimer’s. But bigger purchases can complicate things.
Appointing a trusted person to handle your bigger financial decisions as your diagnosis progresses could prevent you from experiencing financial hardship. And maintaining control of your smaller purchases while it’s still prudent for you to do so can ensure you still feel empowered.
Create a Living Will
Creating a living will while you still have the capacity to do so can be beneficial. Similar to a normal will, your living will expresses your wishes for what you’d like to happen with your estate. However, a living will can become active while you’re still alive but no longer have the mental capacity to manage your affairs. Your living will can cover financial decisions as well as health directives and your wishes for after you pass on.
Appoint Powers of Attorney
Powers of attorney are trusted people who can make financial decisions for you when you’re no longer able to do so. For someone with an Alzheimer’s diagnosis, it’s important to appoint powers of attorney early on. These could be your spouse, your children, a close friend, or someone you hire. Your powers of attorney will essentially assume responsibility for your decision-making after you’re unable to.
In sum, your Alzheimer’s diagnosis can be managed well when you take action early and plan for your future. Progressively delegating your large financial decisions to a trusted third party can prevent hardship down the line. Additionally, look into drafting a living will. This legal document can help you make difficult financial decisions in advance and give loved ones guidance on how to handle your affairs.
Resource Links
“Alzheimer’s Disease Facts and Figures” via Alzheimer’s Association
“Different Types of Stocks to Invest In: What Are They?” via The Motley Fool
“Preparing a Living Will” via the National Institute on Aging